Aon vs Aeon Which Should You Buy?

Aon Plc and Aon Corp, both financial services companies, are often confused due to their similar names. Aon Plc is a global professional services firm offering risk, retirement and health solutions, whereas Aon Corp is a technology company specializing in human capital management software. Investors should carefully differentiate between the two companies based on their distinct business models and revenue streams to make informed decisions when considering investing in either Aon Plc or Aon Corp stocks.

Aon or Aeon?

When comparing Aon and Aeon, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between Aon and Aeon.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. Aon has a dividend yield of 0.86%, while Aeon has a dividend yield of 0.0%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Aon reports a 5-year dividend growth of 4.18% year and a payout ratio of 22.13%. On the other hand, Aeon reports a 5-year dividend growth of -2.66% year and a payout ratio of 0.00%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with Aon P/E ratio at 34.21 and Aeon's P/E ratio at 124.04. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Aon P/B ratio is 13.35 while Aeon's P/B ratio is 3.20.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Aon has seen a 5-year revenue growth of 0.50%, while Aeon's is 0.07%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Aon's ROE at 87.43% and Aeon's ROE at 2.58%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $382.76 for Aon and $25.23 for Aeon. Over the past year, Aon's prices ranged from $268.06 to $389.21, with a yearly change of 45.20%. Aeon's prices fluctuated between $19.88 and $29.30, with a yearly change of 47.38%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.